Kroger to sell convenience stores to UK's EG Group for $2.15 billion

Reuters Staff

2 Min Read

(Reuters) - Kroger Co (KR.N) will sell its nearly 800 convenience stores to British gas station operator EG Group for $2.15 billion (£1.5 billion), the U.S. supermarket chain said on Monday, as its sharpens focus on its mainstay grocery business amid a brutal price war.

Kroger said it plans to use proceeds from the sale to buy back shares and lower debt.

The sale is part of Cincinnati-based Kroger’s “Re-stock” plan that aims to revamp its nearly 2,800 brick-and-mortar supermarkets, cut prices and boost in-store technology.

Kroger is also investing in online channels amid stiff competition from chief rival Walmart (WMT.N), discounters Lidl and Aldi, and Whole Foods, which is owned by Amazon.com Inc (AMZN.O).